Millennials are spending less on vacations and their thrifty getaways are causing a headache for the travel industry. According to travel insurance company Allianz Global Assistance, “Summer travel will actually increase by one-half of a percent in 2015.”
The company claims that Americans will spend $85.5 billion on summer vacations in 2015, down by 13.5% from a high of $98.8 billion in 2014.
The company says that the average Millennials are spending just $400 on summer travel.
The thrifty nature of many Millennial travels is actually serving to boost the profits for many connected companies, including Airbnb, Uber, Lyft, GetAround, and Feastly.
In the survey, 60% of 18-to-34-year-olds said they trust sharing economy services, that’s compared to 37% of all other travelers.
The company says travelers 35 to 54 and 55 and above are still unaware of the numerous cost saving sharing economy services.
Only 47% of Americans are aware of at least one of these sharing economy services and overall 17% of them say that they’re likely to use a sharing economy service for their summer vacation.
If there is one positive finding in the study it may be that more people who say they will take a vacation this Summer are actually able to afford that vacation when the time arrives.